Coal mining and support activities played a relatively insignificant role in the Illinois economy, representing only 0.17% of Illinois private industry economic activity in 2010.

The Illinois coal industry directly or indirectly supported 11,307 employees in 2010, or only 0.19% of the Illinois workforce.

When taking all revenues and expenditures into account, it is estimated that the impact of the coal industry on the Illinois state budget in FY 2011 amounted to a net cost to the state of $19.8 million

Recommendations:

Implement a state severance tax on coal and distribute a portion of the revenues to local governments– In many coal-producing states, severance taxes play an important a role in funding education, healthcare, infrastructure and other services provided at the state and local level. A total of 38 states have some type of severance tax.

Create a permanent mineral trust fund – This fund would support short-term and long-term economic development goals and protect against any future declines in jobs and revenues provided by the coal industry.

Conduct a detailed analysis of the full costs and benefits of grant programs supporting coal-related projects and implement greater transparency and oversight – Right now, it is not readily apparent how outcomes of grants are evaluated or whether they are evaluated at all. Some state grants are re-granted to other organizations without public accountability.